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Cost And Performance Management For Tourism And Hospitality Assessment Homework Answer
Referencing Styles: APA
Course Code: THH3113
Course Title: Cost and Performance Management for Tourism and Hospitality
You are the RM at Purple Resorts. Jenny is the property’s DOSM and Danny is the FOM. All three serve on the hotel’s RM boards committee headed by the DOSM. The hotel has 125 rooms that it can serve provide to the customer per night stay. Last year records show that the hotel usually has 92% occupancy for the New year holiday season from 28th December till 2nd January every year. The rooms are to sell at a rack rate of $129.99 per night.
Danny has been approached by the Australian Cricket Association to block 100 rooms (80% occupancy) every day from 28th December till 2nd January for $109.99 per room. Purple Resorts Australia RM Committee are planning to find out whether Danny’s offer would be beneficial or should they open for business, as usual, to operate with the forecasted 92% occupancy. The RM committee requires you to differentiate explain which of their costs are fixed and variable and any recommendations to change from the variable to fixed costs or would that be better to stay as variable costs according to the cost behaviour and driver.
Forecasted expenses for the period 28th Dec 2020 – 3rd Jan 2012
|Full-time staff salary||$ 28,000.00|
|Casual staff wages||$ 14,000.00|
|Electricity charges||$ 4,800.00|
|Water charges||$ 5,600.00|
|Guests laundry charges @ 100 % occupancy||$ 1,522.00|
|Room Cleaning charges @ 100 per cent occupancy||$ 9,132.00|
|phone and internet charges yearly charges||$ 31,200.00|
|weekly bank charges||$ 280.00|
- The DOSM, head of the RM committee has asked you to prepare the following and submit a report to the RM committee with the following requirements below to decide.
- The DOSM would like to see these following in the video presentation for the committee.
- The Forecasted total cost and revenue for Danny’s Proposal and normal occupancy.
- The Break-even units in rooms and dollars.
- Comparison of Danny’s proposal with the normal occupancy and which would be yielding more?
- Your Recommendation.
- Reason for your Recommendation.